A living trust Phoenix, AZ is great estate planning tool for those that want to determine how to best gift their homes to loved ones once they pass on. However, all too often, while the primary home is gifted through the trust, the vacation home may be forgotten, forcing it to pass through the costly and often time-consuming process of probate. In fact, many people don’t even realize that it is possible to include a vacation home in a living trust. Not only is it possible, but it is actually recommended, as well. After all, you don’t want your loved ones to navigate the complicated system of probate nor do you want them to argue over the rights to the home because your intentions for it were not clear. You want to ensure that a vacation home can stay in the family for future generations, allowing them a place to come and gather.
A living trust Phoenix, AZ allows you to re-title your vacation property to be part of the trust. You can designate yourself to be the trustee of the property and list your loved ones as beneficiaries to whom the property would pass in the event of your passing. If you list your vacation property within the confines of the trust, then you can avoid the property going through probate, which is a legal process that works with a will submission to the court so that your final wishes are honored. The property does not affect the property as long as you are living, but rather allows for a smooth transition to your heirs upon your passing.
In addition to re-allocating your vacation property into the trust, there are a number of other considerations to keep in mind. Include with your living trust Phoenix, AZ a written agreement that establishes your wishes for use of the home and the process by which you would like for it to be gifted. It should be signed by you and your beneficiary, to ensure that everyone understands the process by which the vacation is gifted or passed on through the living trust Phoenix, AZ.
Within the agreement, include clauses on who can use the home and when; who is in charge of determining and making improvements to the home; who handles regular expenses (utilities, home improvements, etc.); is smoking allowed in the home and how often can the home be used by any one individual (for instance, can some relatives use it in odd years and others in even years); are pets allowed in the home; will the home be a professionally managed property or will family members be responsible for managing the home; who handles furnishing the home and who will pay for those furnishings; who makes legal decisions about the home; who will maintain insurance coverage on the home; what extra family members and friends can use the home (step-kids, in-laws, friends, etc.)
Once you make these decisions, put them on paper. Discuss them with the family members involved with using the home, so everyone is aware of your decisions and can offer input on them. Perhaps another family member will think of something about the process that you did not, which you can then include in your written instructions to accompany your living trust Phoenix, AZ. This also gives you an opportunity to make sure everyone understands why made the decisions you did, and you can resolve any potential conflicts before they crop up after you’ve passed away. Sometimes, it helps for you to explain the direction you’ve taken with your decisions to soothe over possible issues among family members. The more specific you are in your instruction, the easier and more seamless this process will be.
These are all important determinations to make as you include your home in a living trust Phoenix, AZ. A gift of this magnitude can be wonderful for family and friends once you’ve passed away, but only if conditions are in place to govern use of the home. Otherwise, it can turn into an epic family battle that can cause more heartache, stress and grief, in addition to the pain everyone is already feeling after your passing.
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If you are not sure as to what legal document you currently have contact one of our professionals to help you with your estate planning. They will make sure you have all of your grounds covered and have the right legal documents that best suite your wants and needs.
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